A flat,or slightly sloped,regression line indicates:
A)a strong relationship between the cost driver and costs.
B)a weak relationship between the cost driver and costs.
C)an economically plausible relationship exists.
D)management should increase costs.
E)there is no relationship between the cost driver and costs.

Question

Quizplus · Accepted Answer

A flat or slightly sloped regression line indicates a weak relationship between the cost driver and costs. This means that changes in the cost driver are not strongly correlated with changes in cost.

A Flat,or Slightly Sloped,regression Line Indicates